Link: Active Trader Studies Schlumberger
Schlumberger: Funny name, powerful stock.
Even though I don’t watch “Cramer”, others inform me he has mentioned this stock various times and from my studies, the fundamentals, as well as the technical charts (regardless of what method you use) look promising.
Active Trader Blog posts a strong daily chart of SLB as well as a quick commentary on how to limit risk by using a proven, conservative (simple) options strategy.
Posting this link serves a few purposes:
- Position traders can see an example of a covered call sale
- Swing traders can see a nice uptrend and confirmed technical breakout
- All traders can learn a bit from studying options and how they can enhance returns
There is a negative momentum/price swing divergence, but that’s no reason to exit – only a caution. Notice the rhythmic price swings and the thought that we are making a new price swing high.
Study the chart and see if you can learn a few insights.